Assignats

Paper currency issued by the National Assembly.

Assignats were a form of paper money issued by the National Assembly of France starting in 1789. They were initially created to help finance the government deficit and to support the economy during the early years of the Revolution. The assignats were backed by the value of confiscated church properties which were sold to raise revenue. Over time, the use of assignats increased, leading to inflation and a decrease in their value. This contributed to economic instability and social unrest, as the purchasing power of the assignats diminished significantly.

Assignats were a form of paper money that played a crucial role during the French Revolution. Initially issued by the National Constituent Assembly in December 1789, they were backed by the value of confiscated properties from the Catholic Church (known as biens nationaux). These properties were expected to guarantee the value of the assignats.

The concept behind the assignat was not merely fiscal; it was also a political strategy aimed at undermining the economic power of the Church while financing the state's burgeoning expenses. When first issued, the assignats were in the form of interest-bearing bonds. However, by September 1790, they had transformed into legal tender (money not bearing interest).

The assignats were initially well-received. They helped to alleviate the shortage of coinage and stimulated trade to some extent. However, the reliance on assignats led to significant economic challenges. The National Assembly, faced with persistent fiscal deficits, produced more assignats - leading to their depreciation over time. By the middle of 1793, the assignats had lost a substantial portion of their value.

Inflation surged as the value of the assignats declined. This inflation had far-reaching social and economic impacts, exacerbating the revolutionary fervor. Merchants and shopkeepers began to hoard goods, expecting prices to rise even further. The working classes, already squeezed by high food prices, found their purchasing power diminished even more.

The Revolutionary government attempted various measures to control the situation. Price controls (such as the General Maximum in 1793) and efforts at currency reforms did little to stabilize the economy. Counterfeiting also became a significant issue, further undermining confidence in the assignats.

In 1796, the assignat system was ultimately abandoned in favor of the mandat territorial. This shift aimed to stabilize the currency and rebuild economic confidence. However, the damage inflicted by years of inflation and economic instability had lasting effects. The assignats, while initially a revolutionary innovation, are often remembered as a cautionary tale about the dangers of excessive money printing and economic mismanagement.

Did you know?

Assignats were originally created as a form of promissory note, backed by the value of confiscated church property during the Revolution, allowing the government to fund its efforts.
The first assignats were issued on 19 December 1789, valued at 400 million livres (a significant sum at the time), aiming to stabilize a faltering economy.
Initially intended to be a temporary measure, assignats quickly fell into devaluation; by 1796, their worth had plummeted, leading to rampant inflation.
Despite their failure as a stable currency, assignats became an essential tool for the revolutionary government, symbolizing the radical economic reforms of the time.
Assignats were notable in that they could be used to purchase land; this led to a significant shift in ownership, as many aristocratic lands were sold off, democratizing land ownership to some degree.
The use of assignats catalyzed criticism and opposition among various factions, including those who saw them as emblematic of the excesses of revolutionary finance.